Colonial Bancgroup faces federal investigation - WSFA.com Montgomery Alabama news.

Colonial Bancgroup faces federal investigation

Montgomery-based Colonial BancGroup says it's under criminal investigation by Justice Department over alleged accounting irregularities at its mortgage warehouse lending unit.     

The company says the probe involves one year's worth of financial statements and says it intends to cooperate.

The announcement follows a raid by federal agents on Monday at Colonial BancGroup's branch in Orlando, Florida.

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